| Summary: | 碩士 === 輔仁大學 === 金融研究所 === 94 === In recent years, there are some papers try to discuss corporate strategies with integrated point of view. For example, Han, Chian-Shan (2004) states that there are important linkages between product market and insider trading. Corporate manager is not only the management but also insider of a company. This makes the issues that combine insider trading and product market competition very interesting. This paper continues the former research about insider trading and product market competition but put more weight on manager’s behavior. That’s because lots of surveys revealed overconfidence is an attribute of human being, and as the degree of job professionalism increase the tendency of overconfidence become more apparent. Obviously, a corporate manager will fit such kind of description. Therefore, through the setting of model, this paper shows how an overconfident manager acts in the stock market and product market. Finally, we bring up the idea that overconfident manager will trade more volumes in the stock market than rational manager. However, there is no necessity he will produce more in the product market. The quantity he produces depends on the market condition.
|
|---|
